Free tool
Free year-end rebate calculator: tiered scales, whole or marginal rate
Enter your agreement’s tier scale and the supplier’s turnover: the calculator gives the tier reached, the year-end rebate, the gap between whole and marginal rates, and what the next tier would be worth.
Everything is computed in your browser: no data is sent or stored.
Amount excluding VAT in euros, e.g. 1,250,000
Tier scale
Each tier starts where the previous one stops. The last tier has no upper bound.
| Tier | From | Up to (excluded) | Rate (%) | Remove |
|---|---|---|---|---|
| 1 | 0 | |||
| 2 | 500,000 | |||
| 3 | 1,000,000 | |||
| 4 | 2,000,000 | No limit ∞ |
Used to compute the growth in euros
Growth scale (on the growth in euros)
The first tier covers decreases. Bounds are growth amounts in euros.
| Tier | From | Up to (excluded) | Rate (%) | Remove |
|---|---|---|---|---|
| 1 | Any decrease | |||
| 2 | 0 | |||
| 3 | 100,000 | |||
| 4 | 300,000 | No limit ∞ |
Result
Base scale rebate
€25,000
- Tier
- Tier 3 of 4
- Tier rate
- 2%
- Effective rate
- 2%
Same scale, two calculation modes
Difference between the two modes: €15,000
Next tier
- Turnover to go
- €750,000
- Rebate at the next tier
- €60,000
- Gain if the tier is reached
- +€35,000
How to use the calculator
Start from an example or enter your own scale. Each row is a tier: it starts where the previous one stops, and the last tier has no upper bound. Amounts accept English and French formats (1,250,000 or 1 250 000) and rates up to four decimals (2.25).
- Enter the supplier’s annual turnover, excluding VAT.
- Pick the calculation mode set by the agreement: whole rate or marginal rate.
- Add a growth bonus if needed, computed on the growth versus last year.
- Copy the link to share the simulation: every parameter is in the address.
How the rebate is calculated
A tiered scale assigns a rate to each band of turnover. Tiers are half-open intervals: turnover exactly equal to a tier’s lower bound reaches that tier. The amount is rounded once, at the end, to the euro or to the cent, to the nearest (halves round up).
Rebate (whole rate) = turnover × rate of the tier reached
Rebate (marginal rate) = Σ turnover slice × its tier’s rate
With the example scale (bounds at €500k, €1M and €2M for rates of 0, 1, 2 and 3%), a supplier at €1,250,000 reaches the third tier: with a whole rate, the rebate is 2% × €1,250,000 = €25,000.
Whole rate or marginal rate: what changes
With a whole rate, the rate of the tier reached applies to all turnover, from the first euro. It is the most common and most motivating mode, but it creates a threshold effect: crossing a bound raises the rebate at once.
With a marginal rate, each slice earns the rate of its own tier, like an income tax scale. On the same example the rebate drops to €10,000 (0% on the first €500k, 1% on the next €500k, 2% on the last €250k), an effective rate of 0.8%. There is no threshold effect, and the cost for the supplier is more predictable.
Turnover of €1,250,000 · €0+ 0% · €500k+ 1% · €1m+ 2% · €2m+ 3%
Whole rate · the reached tier’s rate applies to all turnover
Rebate €25,000
Marginal rate · each slice at its own tier’s rate
Rebate €10,000 (effective rate 0.8%)
- €500k × 0% = €0
- €500k × 1% = €5,000
- €250k × 2% = €5,000
Distance to the next tier, a negotiation lever
The calculator shows the turnover missing to reach the next tier and the rebate it would trigger. In the example, €750,000 more reaches €2M, where the whole-rate rebate would rise to €60,000.
For the purchaser, it is an argument to concentrate volume with a supplier close to a threshold. For the supplier, it is a cost to plan for. At year end, turnover just below a bound also deserves a careful check of the last declared figures, and that is often where the retained rate is negotiated.
Frequently asked questions on rebate calculation
How do you calculate a year-end rebate?
Apply the agreement’s scale to the year’s turnover, usually excluding VAT and net of credit notes, as the agreement defines it. With a whole rate, the rebate is the turnover times the rate of the tier reached. With a marginal rate, it is the sum of each slice of turnover times its tier’s rate.
What is the difference between a whole rate and a marginal rate?
With a whole rate, the reached tier’s rate applies to all turnover, so crossing a bound raises the rebate at once. With a marginal rate, each slice keeps its own rate and the rebate grows without jumps. For the same scale, the marginal rate always gives an amount lower than or equal to the whole rate.
What is the distance to the next tier?
It is the turnover the supplier still needs to reach the lower bound of the tier above. The calculator also shows the rebate due at that level and the corresponding gain, which helps prepare the negotiation.
How does a growth bonus work?
A growth bonus is a second scale applied to the turnover growth versus the previous year. The tier is set by the growth, in euros in this calculator, and the rate applies to the current year’s turnover. A decrease falls in the first tier, usually at 0%.
Are the results the same as in Palier?
Yes. The calculator runs the Palier software’s calculation engine: half-open tiers, exact arithmetic in cents, one rounding per scale with halves rounded up. It is checked against the same reference examples as the product.
Are my figures stored?
No. The calculation runs in your browser and nothing is sent to our servers. The share link simply carries the scale and the turnover in the page address: only share it with the people concerned.
See Palier on your own tier scales
30 minutes through declarations, validation, calculation and negotiation of your rebates. Send us a scale and we will set it up for the demo.
- Demo on your sample data
- In English or French
- No commitment